Goat rearing plays an important role in the national economy.

It provides gainful employment

and income to the weaker sections especially the rural poor. The only recognised breed of
goat in the state is Bengal goat. The core of the breeding tract is West Bengal and the
neighbouring Bangladesh. Very close variants of the breed are widely distributed all over
eastern India. Among three major coat colour varieties, viz., black, brown and white,
prevalence of black is highest and hence is also popular as Black Bengal. However relative
ratio of different coat colours is variable over the breeding tract. Hair coat is thin and shiny.
They are short legged with deep body. Ear is short and erect. Horn is present in both sexes but
relatively smaller in females. Among different qualitative traits, prolificacy, chevon and skin
quality are of highest order. Its legs are short, but the body is deep. Bucks weigh 14.0-15.3 kg
and nannies 8.4-13.5 kg each. The nannies kid thrice in two year with average kidding size
1.6. The milk yield is, however poor. The breed is highly adapted to low input system
possibly by virtue of its small body size and relatively low rate of nutrient utilization.

1. Status of meat sector in West Bengal:

The state has been a leader in production of Sheep and Goat meat. As per Livestock Census 2012, the
population of Goat is 115.06 and the number is decreased compared to census 2007. The State of West
Bengal ranks 2nd in the production of Sheep & Goat meat but there still exists a wide gap between
demand and production of meat as the majority of the people in this State are non-vegetarian. The total
meat production in the State was 6.50 lakh M.T in 2013-14, which had increased marginally compared to
2012-13 (6.48 lakh M.T).

1.1 Available infrastructure:

There are five existing Govt. goat farm in our State viz.

(i) Goat Farm, SBF, Kalyani, Nadia.

(ii) Goat Farm, SLF, Kalyani, Nadia.
(iii) Goat Farm, Haringhata, Nadia.
(iv) Goat Farm, Kotulpur,Bankura
(v) Goat Farm, Baramullah, Suri, Birbhum.

2. Financial assistance for Goat farming:

Loan from banks with refinance facility from NABARD is available for starting goat farming. For
obtaining bank loan, the farmers should apply to the nearest branch of a Commercial, Co-operative or
Regional Rural Bank in their area in the prescribed application form which is available in the

branches of financing bank. The Technical officer attached to or the Manager of the bank can help /

give guidance to the farmers in preparing the project report to obtain bank loan. For goat

development schemes with very large outlays, detailed reports will have to be prepared. For high

value projects, the borrowers can utilise the services of NABARD Consultancy Services (NABCONS)
who are having wide experience in preparation of Detailed Project Reports.

3. Scheme Formulation:

A scheme can be prepared by a beneficiary after consulting local technical persons of State Animal
Husbandry Department, DRDA, Sheep-Goat Co-operative society / union / federation and commercial
farmers. If possible, the beneficiaries should also visit progressive goat farmers and government /
agricultural university goat farms in the vicinity and discuss the profitability of goat farming. A good
practical training and experience in goat farming will be highly desirable. The sheep-goat co-
operative societies established in the villages as a result of efforts by the Animal Husbandry/Goat
Development Department of State Government / Goat Development Board would provide all
supporting facilities, particularly marketing of live animals and processed meat.

4. Requirements of a Good Project:

The project should include the following information on technical, financial and managerial
aspects in detail based on type of unit and capacity.

4.1 Technical

a. Nearness of the selected area to veterinary centres, meat market and

the financing bank's branch
b. Availability of good quality animals in nearby livestock markets

c. Source of training facilities.

d. Availability of good grazing ground / lands.

e. Availability of green/dry fodder, concentrate feed, medicines etc.

f. Availability of veterinary aid and marketing facilities near the scheme area.
 4.2 Financial:

a. Unit Cost - The average cost of goat unit.

b. Input cost for feed and fodder, veterinary aid, insurance, etc.
c. Output costs i.e. sale price of live animals etc.
d. Income-expenditure statement and annual gross surplus.
e. Cash flow analysis.
f. Repayment schedule i.e. repayment of principal loan amount and interest.

5. Appraisal of the project

The project so formulated considering the above mentioned aspects should be

submitted to the nearest branch of the bank for availing credit facility for
establishment of the goat farm. The bank will then examine the project for its
technical feasibility, financial viability and bankability.

6. Sanction of Bank Loan and its Disbursement

After ensuring technical feasibility and economic viability, the scheme will be sanctioned by the
bank. The loan is disbursed in stages against creation of specific assets such as construction of sheds,
purchase of equipment and animals. The end use of the loan is verified and constant follow-up is
done by the bank.

7. Lending Terms - General

7.1
Outlay:

Outlay of the project depends on the local conditions, unit size and the investment
components included in the project. Prevailing market prices / cost may be considered to arrive at
the outlay.

7.2 Margin
Money:

Margin depends on the category of the borrowers and may range from 10% to
25%.
 7.3 Interest
Rate:

Banks are free to decide the interest rates within overall RBI guidelines. However, for working
out financial viability and bankability of model project, the rate of interest is assumed at 13.00% p.a.

7.4
Security:

Security will be as per RBI / NABARD guidelines issued from time to

time.

7.5 Repayment of
loan:

The loan repayment is determined, on the basis of gross surplus generated in the project. Usually
the repayment period of loan for goat farming is 5 to 7 years

7.6 Insurance:

The animals and other assets (shed, equipment) may be insured.

8. Economics of Goat Farming

A model economics for goat farming with a unit size of 10F+1M goat is given below. This is
indicative and the applicable input and output costs and the parameters observed at the field level
may be incorporated.

8.1 Project Cost:

Particulars Cost (Rs.)

A. Capital Cost
Cost of Does (10 animals; Rs.2000 each) 20000
Cost of Buck 3500
Night shelter for Buck, Doe and followers Adults (Buck-20 sq.ft;Doe-
10 sq.ft ) (Rs.60/sq.ft) 7200
Transportation Charges @Rs.50/animal 550
a. Equipment including water facility(feeder, water etc.)
@Rs.40/animal 440
b. Fodder cultivation@1/2 acre 1500
c. Supplementary concentrate feed (one breeding cycle for parent
stock) @300g/animal/day; Rs.15/kg for 18 months 26730
Veterinary aid @Rs.30/animal/year for 11 animals 330
Insurance cost for the adults (5% cost of adults) 1175
Misc. expenditure (lumpsum) 500
Total Financial Outlay 61925
Say 62000
Margin Money (10%) 6200
Bank Loan 55800

8.2 Herd Chart:

 Year Opening Stock No. of Kids born Mortality in Kids No. of Kids sold Culling in Transfer of Closing Stock
Adults Kids Adults Kids to Adults Kids
Male Female Male Female Male Female Male Female Male Female (females) Adults Male Female Male Female

I 1 10 0 0 6 6 1 1 0 0 0 0 1 10 5 5
I 1 10 5 5 7 7 1 1 5 3 2 2 1 10 6 6
II 1 10 6 6 14 14 2 2 12 10 2 2 1 10 6 6
IV 1 10 6 6 7 7 1 1 6 4 2 2 1 10 6 6
V 1 10 6 6 7 7 1 1 6 4 2 2 1 10 6 6
VI 1 10 6 6 14 14 2 2 12 10 2 2 1 10 6 6

8.3 Techno-economic parameters:

Particulars Assumption
No. of animals - Does 10
-Buck 1
Purchase price of buck (Rs.) 3500
Purchase price of Does (Rs/animal) 2000
Feed consumption per day
(Kg/animal)
-Adults 0.25
-Kids 0.1
No. of days of feeding per cycle 120
Cost of Feed (Rs./kg) 15

Insurance premium per animal per year (% of the cost of animal) 5

Veterinary Aid per animal per year
(Rs.) 30
Sale price of male kids (Rs./kid) (@7-
8 months of age) 3600
Sale price of female kids (Rs./kid) 3000
Sale price of culled Does (Rs./Doe) 2500
Income from manure/animal/year
(Rs.) 25
 Particulars I year II year III year IV year V year VI Year
Conception rate (%) 90
Kidding percentage
- I year 140
-II Year 160
Inter Kidding period (months) 9
Mortality in kids (%) 15
Culling % 20
Rate of interest (%) 13
Net income towards repayment (%) 60
Repayment period (Years) 5

I II V
Particulars year year III year IV year year VI Year
Income:
By sale of
Male kids 0 18000 43200 21600 21600 43200
By sale of
Female kids 0 9000 30000 12000 12000 30000
By sale of
culled Does 0 5000 5000 5000 5000 5000
By sale of
manure 275 275 275 275 275 275
Total 275 32275 78475 38875 38875 78475

8.4 Income Expenditure analysis:

Expenditure:
On Concentrate
feed - Adults Cap. 4950 4950 4950 4950 4950

- Kids Cap. 2160 5940 2700 2700 5940

On insurance Cap. 1175 1175 1175 1175 1175
On Veterinary Aid Cap. 330 330 330 330 330
Total 0 8615 12395 9155 9155 12395
Net
Profit 275 23660 66080 29720 29720 66080
 Cost:
Capital
Cost 62000
Recurring
cost 0 8615 12395 9155 9155 12395

Total
Cost 62000 8615 12395 9155 9155 12395
Benefit:
Benefits 275 32275 78475 38875 38875 78475
Residual
Value* 1764
Total
Benefits 275 32275 78475 38875 38875 80239
Net
Benefits -61725 23660 66080 29720 29720 67844
Discount
Factor 0.884956 0.783147 0.693050 0.613319 0.542760 0.480319
BCR 1.88 : 1
NPV 68765
IRR 56.83

Civil Structures @
10% 720
Equipment @ 10% 44
Salvage value of
animals 1000
8.5 Financial analysis: